Correlation Between Cangzhou Mingzhu and Tongyu Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Tongyu Communication, you can compare the effects of market volatilities on Cangzhou Mingzhu and Tongyu Communication and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cangzhou Mingzhu with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Tongyu Communication.
Diversification Opportunities for Cangzhou Mingzhu and Tongyu Communication
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cangzhou and Tongyu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Cangzhou Mingzhu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cangzhou Mingzhu Plastic are associated (or correlated) with Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Tongyu Communication go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Tongyu Communication
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to under-perform the Tongyu Communication. But the stock apears to be less risky and, when comparing its historical volatility, Cangzhou Mingzhu Plastic is 1.35 times less risky than Tongyu Communication. The stock trades about -0.18 of its potential returns per unit of risk. The Tongyu Communication is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,653 in Tongyu Communication on October 30, 2024 and sell it today you would lose (222.00) from holding Tongyu Communication or give up 13.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Tongyu Communication
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Tongyu Communication |
Cangzhou Mingzhu and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Tongyu Communication
The main advantage of trading using opposite Cangzhou Mingzhu and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, Tongyu Communication can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. Quectel Wireless Solutions | Cangzhou Mingzhu vs. Linkage Software Co | Cangzhou Mingzhu vs. Hainan HNA Infrastructure |
| Tongyu Communication vs. Bus Online Co | Tongyu Communication vs. Holitech Technology Co | Tongyu Communication vs. Gome Telecom Equipment | Tongyu Communication vs. Cultural Investment Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |